Date Requested:January 24, 2011
Time Requested:04:27 PM
Agency: Personnel, Division of
CBD Number: Version: Bill Number: Resolution Number:
2011R1184 Introduced HB2770
CBD Subject: FLEXIBLE LEAVE ACT
FUND(S)
ALL
Sources of Revenue
General Fund,Special Fund,Other Fund All w/ personal services
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    This measure will increase the cost of state government by providing an additional use of paid sick leave (i.e., sick leave that might not otherwise be used)and, due to the use of that additional paid leave, increase the cost of overtime and/or temporary employment to cover absences of employees, particularly in correctional facilities and other law enforcement areas, health care facilities, and safety-sensitive positions such as those involving child protective services, snow removal and road repair, etc.

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 11,652,086 11,652,086 11,652,086
Personal Services 11,652,086 11,652,086 11,652,086
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    The above estimate is based on the assumption that 5% of current employees will use an additional 25 days of paid sick leave per year under the provisions of this measure. Data for this estimate includes the total FTE's (37,324) and total annual salaries ($1,499,121,968) for those FTE's as of 12/31/2010 from a report of the State Budget Office (Personal Services by Account). The average daily rate of pay with benefits (@ 20%) was calculated based on this data and used to estimate the cost. In addition to the cost of the paid leave, the cost of replacing half of the absent employees at a rate of 70% of the average rate was included. All estimated costs (pay and benefits) are shown as personal services.
    
    Additional estimates were made assuming paid leave taken by 10%, 15%, 20% and 25% of employees with ranges from 1 day each up to 55 days each (i.e., 11 weeks additional plus 1 week already provided for a total of 12 weeks per FMLA). These estimates (leave costs and replacement costss) ranged from $466,083 for 5% of employees taking 1 day of paid leave to $128,172,942 for 25% of employees taking 55 days of paid leave.
    
    An alternate estimate could assume that each employee took 1 additional day of paid sick leave. That cost for pay and benefits is $6,919,024.


Memorandum
Person submitting Fiscal Note:
Tari McClintock Crouse
Email Address:
tari.m.crouse@wv.gov
    This estimate includes the cost for state government only. These provisions appear to also apply to other public employers (i.e., counties and municipalities) as well as to all private employers who provide paid leave by a policy or collective bargaining agreement.
    
    The costs and implications of this legislation for other public employers and for private employers should also be considered.